IDEA: Offer volume discounts versus price cuts when you know the buyer has other suppliers.

When asked for a price cut and you are already aware that the buyer has other vendors, offer that buyer a pay cut but only tied to an increase in order quantity; in essence a volume discount. You know he has the volume so in order to give him a price cut, you will do so but want more volume. Tell him to increase his order and you will cut his price because you get cost cuts with an increase in volume. You can ask for this easily when he has declared to you that you are not the only supplier for this product or service. Tell him you are ready to cut his price when you receive a new quantity order this week.